Due to the lack of regulation in live streaming industry, recently, China Advertising Association released “Webcast Marketing Code of Conduct”. Hosts in the live streaming room are not simply reading advertisements or introducing products, but they are “soliciting an offer” to consumers, which belongs to the category of advertising: once the consumer agrees, the “contract” would be established.

As a consequence, live streaming advertising has to comply with advertising laws as well: In the case of businesses selling for special goods, including but not limited to drugs, medical devices, health foods, and formula foods for special medical use, the corresponding qualification or administrative license shall be obtained in accordance with the law. (Source: Beijing Daily)

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